Pick the Stocks That Hedge Fund Managers Love

MarketWatch assistant managing editor Greg Morcroft takes a look at stocks that were most popular among hedge funds in the third quarter. Photo: Getty Images

This transcript has been automatically generated and may not be 100% accurate.

I ... what characteristics hedge fund managers look for in stocks ... a large cap stocks ... stocks that are very liquid stocks that are likely to provide meaningful gain over relatively short period time ... bank showed up on everybody's list in the third quarter ... and JPMorgan was one of the top banks purchased by hedge funds during the third quarter ... billionaire hedge fund manager Ken Fisher bought the stock ... stocks known for its fortress balance sheet its dynamic CEO Jamie diamonds ... and ... growing economy even a steady economy should help desk and I do very well ... Citigroup is also on the list we've all heard about Citigroup recently ... had its fair share of problems ... it's our CEO different handed resigned unexpectedly not too long ago so there's some concern in some uncertainty about the company but David Tepper and Appaloosa Management loaded up quite a bit ... and see the city was also ... the ... most popular stock among hedge fund managers with the most buyers during the third quarter ... as fund managers are also really hot on General Motors ... be scooped up a lot of it during the third-quarter ... famously David Einhorn well known as the manager of Greenlight Capital was a big buyer ... GM again it's an interesting stock and played a meaningful role in the latest presidential election ... that had a lot of help from the US government that things seem to be looking better ... and people seem to be buying more cars insurer AIG American International group also makes the list you might not think so given all the bad publicity a tad over several years ... it too was the subject of a large bailout but Leon Cooperman some eighty advisors is a big fan ... so were several other hedge fund managers which made AIG known for its strong global reach ... the third most popular stock among hedge funds in the third quarter ... tech juggernaut Grubel was also on the shopping list of many hedge funds ... the firm's ever increasing earnings in the acceptance of its Android smartphone technology ... along with Chromebook technology for laptops ... is getting lots of fans not surprisingly Apple made the list of hedge funds most popular stocks in remained in the number one position ... however ... fewer hedge funds actually own the stock at the end of the third quarter than at the end of the second quarter ... showing that like investors in the open market where we've seen the stock price of Apple fall twenty percent in the last couple weeks ... then tries to do a bit nervous ...